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PROBLEM NO. 4 ABC Company maintains a checking account at the HCBC Bank. At August 31, selected data from the ledger balance and the bank statement are as follows: Cash in Bank Book Balance, August 1 Book Debits Book Credits Balance per bank, August 1 Bank Credits P17,600 82,000 76,900 19,200 80,070 74,740 Bank Debits Your examination of the bank data shows that the credits consist of P78,000 of August deposits and a credit memorandum of P2,070 for collection of a P2,000 note plus interest revenue of P7o. The August debits per bank consist of checks cleared, P74,700 and a debit memorandum of P40 for printing additional company checks. You also discover the following errors involving August checks: (1) a check for P230 to a creditor on account that cleared the bank in August was journalized and posted as P320, and (2) a salary check to an employee for P255 was recorded by the bank for P155. The July 31 bank reconciliation contained only two reconciling items: deposits in transit, P1,000 and outstanding checks, P2,600. 1. How much is the deposit in transit on August 31? 2. How much is the outstanding check on August 31? 3. How much is the adjusted cash balance on August 31?

PROBLEM NO. 4 ABC Company maintains a checking account at the HCBC Bank. At August 31, selected data from the ledger balance and the bank statement are as follows: Cash in Bank Book Balance, August 1 Book Debits Book Credits Balance per bank, August 1 Bank Credits P17,600 82,000 76,900 19,200 80,070 74,740 Bank Debits Your examination of the bank data shows that the credits consist of P78,000 of August deposits and a credit memorandum of P2,070 for collection of a P2,000 note plus interest revenue of P7o. The August debits per bank consist of checks cleared, P74,700 and a debit memorandum of P40 for printing additional company checks. You also discover the following errors involving August checks: (1) a check for P230 to a creditor on account that cleared the bank in August was journalized and posted as P320, and (2) a salary check to an employee for P255 was recorded by the bank for P155. The July 31 bank reconciliation contained only two reconciling items: deposits in transit, P1,000 and outstanding checks, P2,600. 1. How much is the deposit in transit on August 31? 2. How much is the outstanding check on August 31? 3. How much is the adjusted cash balance on August 31?

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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PROBLEM NO. 4 ABC Company maintains a checking account at the HCBC Bank. At August 31, selected data from the ledger balance and the bank statement are as follows: Cash in Bank Book Balance, August 1 Book Debits Book Credits Balance per bank, August 1 Bank Credits Bank Debits P17,600 82,000 76,900 19,200 80,070 74,740 Your examination of the bank data shows that the credits consist of P78,000 of August deposits and a credit memorandum of P2,070 for collection of a P2,000 note plus interest revenue of P70. The August debits per bank consist of checks cleared, P74,700 and a debit memorandum of P40 for printing additional company checks. You also discover the following errors involving August checks: (1) a check for P230 to a creditor on account that cleared the bank in August was journalized and posted as P320, and (2) a salary check to an employee for P255 was recorded by the bank for P155. The July 31 bank reconciliation contained only two reconciling items: deposits in transit, P1,000 and outstanding checks, P2,600. 1. How much is the deposit in transit on August 31? 2. How much is the outstanding check on August 31? 3. How much is the adjusted cash balance on August 31?
Transcribed Image Text:PROBLEM NO. 4 ABC Company maintains a checking account at the HCBC Bank. At August 31, selected data from the ledger balance and the bank statement are as follows: Cash in Bank Book Balance, August 1 Book Debits Book Credits Balance per bank, August 1 Bank Credits Bank Debits P17,600 82,000 76,900 19,200 80,070 74,740 Your examination of the bank data shows that the credits consist of P78,000 of August deposits and a credit memorandum of P2,070 for collection of a P2,000 note plus interest revenue of P70. The August debits per bank consist of checks cleared, P74,700 and a debit memorandum of P40 for printing additional company checks. You also discover the following errors involving August checks: (1) a check for P230 to a creditor on account that cleared the bank in August was journalized and posted as P320, and (2) a salary check to an employee for P255 was recorded by the bank for P155. The July 31 bank reconciliation contained only two reconciling items: deposits in transit, P1,000 and outstanding checks, P2,600. 1. How much is the deposit in transit on August 31? 2. How much is the outstanding check on August 31? 3. How much is the adjusted cash balance on August 31?
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